TORONTO, Feb. 19, 2014 /CNW/ - Accord Financial Corp. (TSX - ACD) today announced its financial results for the fourth quarter and year ended December 31, 2013. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards.
SUMMARY OF FINANCIAL RESULTS
| Three Months Ended
| Year Ended
|Factoring volume (millions)||$ 483||$ 511||$ 1,860||$ 1,865|
|Revenue||$ 7,274,676||$ 7,139,432||$ 26,073,541||$ 25,890,527|
|Net earnings||$ 2,647,099||$ 2,524,785||$ 6,538,011||$ 6,376,597|
| Basic and diluted earnings
per common share
|$ 0.32||$ 0.31||$ 0.80||$ 0.76|
| Basic and diluted weighted
average number of shares
|Dividends paid per common share||$ 0.08||$ 0.08||$ 0.32||$ 0.31|
Net earnings in 2013 rose 3% to $6,538,000 compared to $6,377,000 last year on higher revenue and lower income tax expense. Earnings per share ("EPS") increased 5% to 80 cents from 76 cents in 2012. Net earnings in 2013 were impacted by a $284,000 rise in stock-based compensation expense related to the Company's share appreciation rights ("SARs"). This non-operating expense largely resulted from a rise in Accord's share price on the Toronto Stock exchange in 2013. Excluding the non-operating SARs expense of $370,000 (2012: $86,000), net earnings would have increased by 5% to $6,783,000 compared to $6,434,000 last year. EPS would have risen by 8% to 83 cents compared to 77 cents last year. The Company's return on average shareholders' equity was 13.1% in 2013 compared with 13.8% in 2012 as equity rose at a faster rate than net earnings.
Factoring volume in 2013 was relatively unchanged at $1.86 billion. Revenue increased to $26,074,000 from $25,891,000 in 2012. Revenue increased on higher average funds employed and improved yields in our U.S. financing operation.
Net earnings for the fourth quarter of 2013 rose 5% to $2,647,000 compared to $2,525,000 last year on higher revenue and lower income tax expense. EPS rose by 3% to 32 cents compared to 31 cents in the fourth quarter of 2012. Excluding a fourth quarter SARs recovery of $86,000 (2012: expense $36,000), net earnings would have risen to $2,587,000 compared to $2,549,000 in the fourth quarter of 2012. EPS would have been 31 cents, the same as last year.
Factoring volume for the fourth quarter of 2013 decreased 5% to $483 million compared with $511 million the prior year. Revenue increased 2% to $7,275,000 compared to $7,139,000 in the fourth quarter of 2012 as a result of higher average funds employed and improved yields.
Commenting on 2013's results, Tom Henderson, the Company's President and CEO, stated: "Your Company performed well in 2013 and responded effectively to competitive pressures. Our U.S. operations reported record net earnings in 2013, while our Canadian lending business had a most satisfying year and achieved a record level of funds employed in the fourth quarter, including the acquisition of a competitor's loan portfolio, all of which was achieved with minimal loan losses in 2013. Our non-recourse business experienced continued headwinds from the major credit insurers. However, several new clients with good growth prospects came on board and expenses were further trimmed. On January 31, 2014, Accord completed the strategic acquisition of Varion Capital Corp. ("Varion"), a lease finance company. Varion finances equipment for small and medium-sized businesses in Canada. This strategic acquisition strengthens our ability to serve key markets by providing a broader range of finance solutions for growing companies across Canada."
About Accord Financial Corp.
Accord Financial Corp. is a leading North American provider of asset-based financial services, including factoring, financing, trade finance, credit guarantees and collection services, and now lease financing. For over 35 years, Accord has been helping businesses across Canada and the U.S. manage their cash flows and maximize financial opportunities - keeping business liquid is our goal. Accord is currently the only factoring and asset-based lending company listed on the Toronto Stock Exchange.
SOURCE: Accord Financial Corp.
For further information:
For further information please visit www.accordfinancial.com or contact:
Vice President, Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, Suite 1803
(416) 961-0304 Ext. 207